Hacking the Problem
Leading Change in Management
Chris Mata
The Body Shop
• Classic retail story gone bad
• Location Emeryville, CA
• Sales of cosmetic products
• 10 employee, 1 young female manager
The story
• Expected to meet sales goals, membership card signups, and keep up
with an average minimum transaction amount
• Overambitious manager that sets unrealistic sales goals
• Forced competition resulting in disengaged sales associates.
• Commissions didn’t exist yet the store operated as if it were
• Associates fight over customers and push sales tactics
• Praised for meeting goals and scolded if you didn’t.
• Manager criticized individual performance in front of coworkers
• Associates were also blamed for customers not making purchases.
• The manager ran an “every man for himself” store with no incentives
for teamwork and created a place where no associate wanted to be.
Developing Holistic
Performance Measures
Barrier: Everything was about numbers. Praise for
meeting goals or scolded if you didn’t”
HACK: Adding & changing performance indicators
• No “sticks and carrots”
• Employee Related:
 Growth & skills development
• Operating Indicators:
 Reliability, on-time
 Errors/returns, Cost of quality
• CS Indicators:
 Overall CS, Compliments vs. complaints, customer retention
• Financial Performance:
 Sales as a team, notional margin, return and exchange rates
Increasing Trust &
Reducing Fear
Barrier: Unrealistic sales goals
HACK: SMART Goals
Humanizing the Language
of Business
Barrier: “Manager criticized individual
performance in front of coworkers”
HACK: Human Relations Model
Guidelines for Giving Feedback:
• Motivation, ensure receiver open and ready to hear you
out
• Feedback given in private place that allows for dialogue
• Give the receiver time to respond
• Develop a joint action plan to positively improve the
behavior
Taking the Work Out of Work
& Amplify Imagination
Barrier: “The pressure forced competition and resulted
in disengaged sales associates”
HACK: Inspire teamwork, creative problem solving &
make work fun!
Recommendation
Summary
1. Adding and changing performance indicators
2. Setting SMART goals
3. Conduct frequent constructive evaluations in a closed
off area to avoid distractions
4. Inspire teamwork, not competition between employees
to reach goals, and make work fun!

Problem management

  • 1.
    Hacking the Problem LeadingChange in Management Chris Mata
  • 2.
    The Body Shop •Classic retail story gone bad • Location Emeryville, CA • Sales of cosmetic products • 10 employee, 1 young female manager
  • 3.
    The story • Expectedto meet sales goals, membership card signups, and keep up with an average minimum transaction amount • Overambitious manager that sets unrealistic sales goals • Forced competition resulting in disengaged sales associates. • Commissions didn’t exist yet the store operated as if it were • Associates fight over customers and push sales tactics • Praised for meeting goals and scolded if you didn’t. • Manager criticized individual performance in front of coworkers • Associates were also blamed for customers not making purchases. • The manager ran an “every man for himself” store with no incentives for teamwork and created a place where no associate wanted to be.
  • 4.
    Developing Holistic Performance Measures Barrier:Everything was about numbers. Praise for meeting goals or scolded if you didn’t” HACK: Adding & changing performance indicators
  • 5.
    • No “sticksand carrots” • Employee Related:  Growth & skills development • Operating Indicators:  Reliability, on-time  Errors/returns, Cost of quality • CS Indicators:  Overall CS, Compliments vs. complaints, customer retention • Financial Performance:  Sales as a team, notional margin, return and exchange rates
  • 6.
    Increasing Trust & ReducingFear Barrier: Unrealistic sales goals HACK: SMART Goals
  • 7.
    Humanizing the Language ofBusiness Barrier: “Manager criticized individual performance in front of coworkers” HACK: Human Relations Model
  • 8.
    Guidelines for GivingFeedback: • Motivation, ensure receiver open and ready to hear you out • Feedback given in private place that allows for dialogue • Give the receiver time to respond • Develop a joint action plan to positively improve the behavior
  • 9.
    Taking the WorkOut of Work & Amplify Imagination Barrier: “The pressure forced competition and resulted in disengaged sales associates” HACK: Inspire teamwork, creative problem solving & make work fun!
  • 11.
    Recommendation Summary 1. Adding andchanging performance indicators 2. Setting SMART goals 3. Conduct frequent constructive evaluations in a closed off area to avoid distractions 4. Inspire teamwork, not competition between employees to reach goals, and make work fun!

Editor's Notes

  • #5 Barriers:Sticks and carrot approach to feedback. Reflects Managements key valuesMotivates some but can lead to high absenteeism and turnoverHACK: Other performance measuresEmployee Related:Growth and skills developmentOperating Related: Reliability, Errors/Return rate, Cost of qualityCustomer Satisfaction:CS complains vs retention